IVA completion certificate petition

IVA completion certificates should be issued within 30 days of an IVA completing. Many certificates are taking months to issue despite repeated chasing. These delays are stressful and put peoples lives on hold.

At the end of an IVA, when the debtor has made all agreed payments and fulfilled all responsibilities under the terms of the arrangement, the IP issues a Notice (or Certificate) of completion. This is the formal end of the arrangement and allows the debtor to clear his or her credit files, get removed from the Insolvency Register and, in a nutshell, get on with their lives.

Having lived under tight scrutiny for 5 or 6 years, keeping to a strict budget, foregoing holidays, Christmas celebrations and paying back as much as they can afford, this document has a deep psychological meaning and, as well as allowing finances to be finally sorted out, is the actual “light at the end of the tunnel”. Furthermore, whilst waiting for this certificate to be issued, the debtor is still technically “in” the IVA and bound by the terms: Still unable to seek credit, and, despite already having done all that was required, if they inherit or win anything of value, or wish to sell their house, the creditors are still entitled to the windfall.

There is a 6 month “admin period” already built in to most arrangements --- already more than adequate and arguably already too long. Many firms complete within 2 or 3 months, some within weeks - so it can be done by being pro-active - but others take 4 months plus, sometimes exceeding the 6 months.

From posters’ experience, just in recent months, we have examples of occasions when the issue of a certificate has taken longer than necessary, such as:

• Delayed by PPI and using non-existent legislation as an excuse:
• Certificate delayed and now caught up in administration saga:
• 8 weeks after final review then quoted 3 - 6 months:
• A potential delay - seems they are routinely extending the admin period:
• Six months delay:
• Aperture quoting 3 - 6 months to O/P and responder saying 6:
• 8 months delay - causing problems:
• 4 months and counting - hampering job applications:
• Mysteriously the certificate was never sent!
• 4 months and counting:
• Another routine extension to admin time:

Often these delays are blamed on PPI investigations. However, industry regulators have stated that PPI alone need not delay completion. This can be dealt with by a Deed of Assignment as already used by many firms. Other reasons include late claims by creditors, or creditors not responding. This should be dealt with by issuing a final claim notice, giving creditors a finite 28 days to respond or forfeit their claim. Both can be started prior to the final payment being made --- the arrangement has had an end date for payments for the last 5 or 6 years. It isn’t a surprise! Firms need to be pro-active and start preparations earlier. Look at the earlier closing firms and initiate a best practice programme. Occasionally a previously undiscovered error comes to light, often going back several years. This just should not happen - an annual review is conducted and signed off - it should be correct first time!

Consideration should be given to reducing the current 6 months, or, at least, regarding it as a long stop date, not the expected time frame. The issue of the certificate should be made as soon as the debtor has made the final payment and has fulfilled all of his or her responsibilities. The sorting out of dividends and tying loose ends can be dealt with without holding the debtor “hostage” for reasons never within his or her control and none of their responsibility.

This will allow debtors, who - and I don’t apologise for repeating this again - have fulfilled their agreed responsibilities, to get on with life, rebuild and regain a degree of certainty over their futures.